Presentation for Public Human Resource Management, Chapter 10 - "Compensation"

1. Compensation, Merit Pay and Motivation Presented by: Ken Lee (Qian Li)

2. Organizations Motivate Join & Remain Perform assigned roles Act innovatively & spontaneously Types Of Behavior

3. Desired Behaviors & Rewards Desired Behaviors Organizations encourage Rewards Membership Reliable Role Innovative spontaneous activity Pay & Fringe Benefits Responsibility & Autonomy Social Affiliations Organization provide

4. Pay Membership Performance Cash Retirement plans life & health insurance indirect compensation Instrumental System Rewards Geared to Performance

6. Theory of Pay for Performance Sales in Private Sector PMRS Contingency Pay Schemes Salary Welfare Bonus

7. Design of Pay-for-performance Strategic Choices Structural Issues Process Issues

8. Structured Issues Structured Issues Measures of Performance Comprehensiveness of Criteria /Objectivity of Measures Salary vs Bonus Permanent Adjustment to Base Pay/One-time Bonus Level of Aggregation Individual/Program/Installation/Agency/Bureau Size of Payouts 3% is a good rule of thumb Administrative Convenience Frequency of Payout Hierarchy/ Subunits Number of Different Plans

15. Reasons for Continuing Experimentation Failures involve designs predicated almost exclusively on an individual level of aggregation. Notion of "each according to his or her efforts“ is ingrained in the American political culture. Failures were predictable because the structure or administration of the system violated one or more principles of system design.

17. Thank You! Presented by: Ken Lee (Qian Li)